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The Government of India has announced a temporary exemption of customs duty on cotton imports from June 1 to October 31, 2026. The decision is aimed at managing supply conditions during the cotton off-season while balancing the interests of farmers and the textile industry.

According to the official statement, the measure has been taken with a focus on maintaining stability across the cotton value chain. The government said the policy is designed to ensure adequate availability of raw cotton for domestic textile manufacturers and reduce input cost pressures in the sector.

Support For Textile Industry And MSMEs

The exemption is expected to benefit textile producers, including micro, small and medium enterprises (MSMEs), by improving access to raw materials during periods of seasonal supply constraints. Officials stated that stable cotton availability is important for sustaining production and supporting export competitiveness in the textile sector.

The government also indicated that the move will help moderate price fluctuations in the domestic market. By easing import costs temporarily, the policy is intended to support industry requirements without disrupting the interests of cotton growers.